Current Conditions Sunny, 25.0°C

The Google logo is photographed at the Vivatech show in Paris, Thursday, June 15, 2023. Google says it will pass on the cost of the Liberal government's digital services tax to advertisers. THE CANADIAN PRESS/AP, Michel Euler

Google to charge new fee on ads in response to Canada’s digital services tax

Aug 1, 2024 09:08:00

OTTAWA – Google says it will pass on the cost of the Liberal government’s digital services tax to advertisers.

The company says it will implement a 2.5 per cent surcharge for ads displayed in Canada, starting in October.

A Google spokesperson says the fee is meant to cover part of the cost of complying with the tax.

The tax, approved in Parliament in June, will add a three per cent levy on foreign tech giants that generate revenue from Canadian users.

It’s drawn opposition from trade associations and business groups in the United States, where many of the tech giants are based.

The Office of the United States Trade Representative said earlier this month it is open to using all available tools to halt the tax.

This report by The Canadian Press was first published Aug. 1, 2024.

Marshall Jones

News is best when it's local, relevant, timely and interesting. That's our focus every day.

We are on the ground in Penticton, Vernon, Kelowna and Kamloops to bring you the stories that matter most.

Marshall may call West Kelowna home, but after 16 years in local news and 14 in the Okanagan, he knows better than to tell readers in other communities what is "news' to them. He relies on resident reporters to reflect their own community priorities and needs. As the newsroom leader, his job is making those reporters better, ensuring accuracy, fairness and meeting the highest standards of journalism.